The smaller the marginal propensity to save,other things constant,_____.
A)the smaller the marginal propensity to consume
B)the smaller the multiplier
C)the flatter the consumption function
D)the steeper the consumption function
E)the steeper the saving function

Question

Quizplus · Accepted Answer

The marginal propensity to consume (MPC) is 1 minus the marginal propensity to save (MPS). A smaller MPS means a larger MPC, resulting in a steeper consumption function.

The Smaller the Marginal Propensity to Save,other Things Constant,_____